HK Salaries Tax Allowances Calculator 2026/27
Add up all your Hong Kong salaries tax personal allowances for the 2026/27 year of assessment under Inland Revenue Department (IRD) rules. See your total allowance and how it reduces your taxable income.
Hong Kong Salaries Tax Allowances for 2026/27
Hong Kong's salaries tax system gives generous personal allowances that directly reduce your taxable income before progressive rates are applied. According to the Inland Revenue Department (IRD), for the year of assessment 2026/27 the allowances remain at:
- Basic Allowance: HK$132,000 — single filer baseline
- Married Person's Allowance: HK$264,000 — joint election
- Single Parent Allowance: HK$132,000 — sole carer of a child
- Child Allowance: HK$130,000 per child (under 18, or 18–24 in full-time education)
- Newborn Child Additional Allowance: HK$130,000 in the year of birth (doubles to HK$260,000 total)
- Dependent Parent / Grandparent Allowance: HK$50,000 each (age 55–59 or disabled); HK$130,000 each (age 60+)
- Dependent Parent Cohabiting: Additional HK$50,000 / HK$130,000 (doubles base when parent lives with you)
- Dependent Brother/Sister: HK$37,500 each (under 18 or 18–24 in full-time education, you maintain them)
- Disabled Dependant: Additional HK$75,000 per disabled dependant
How HK Salaries Tax Works
HK uses the lower of two calculations:
- Progressive rates on (Income − Allowances − Deductions): 2%, 6%, 10%, 14%, 17% (top rate). 2024 onward: 16% top rate for first HK$5M of net income, 17% above.
- Standard rate on (Income − Deductions only, no allowances): 15% on first HK$5M, 16% above.
Most taxpayers pay the progressive rate, which is much lower due to the allowance deductions. High earners (HK$2M+) sometimes pay the standard rate which has no allowance subtraction.
MPF and Voluntary MPF (TVC) Deductions
Mandatory Provident Fund (MPF) contributions are deductible up to HK$18,000 per year. Voluntary contributions to MPF Tax-deductible Voluntary Contributions (TVC) are deductible up to an additional HK$60,000 per year (combined with QDAP — Qualifying Deferred Annuity Policy). Both significantly reduce your taxable income and are recommended by the Mandatory Provident Fund Schemes Authority (MPFA).
Home Loan Interest Deduction
Per IRD, home loan interest is deductible up to HK$100,000 per year for owner-occupied residential property. The deduction is available for up to 20 years total (lifetime cap). This is separate from the allowances and reduces taxable income directly.
Personal Disability Allowance
The Personal Disability Allowance of HK$75,000 is available to taxpayers who are themselves persons with disabilities (different from the disabled dependant allowance). Requires medical certification.
Sources: Inland Revenue Department Hong Kong (ird.gov.hk), Inland Revenue Ordinance Cap. 112, Mandatory Provident Fund Schemes Authority (mpfa.org.hk). Last updated: May 2026 — based on the 2026/27 Budget allowance schedule.
Frequently Asked Questions
What is the basic allowance for HK salaries tax 2026/27?
For the 2026/27 year of assessment, the IRD basic allowance is HK$132,000 for single taxpayers. Married couples electing joint assessment receive a combined Married Person's Allowance of HK$264,000. These allowances are deducted from your assessable income before progressive tax rates apply.
How much is the child allowance in Hong Kong?
HK$130,000 per child under 18 (or aged 18-24 in full-time education). In the year a child is born, an additional HK$130,000 newborn allowance applies, effectively doubling the first-year allowance to HK$260,000. The child must be unmarried and maintained by you. Step-children and adopted children qualify.
How does the dependent parent allowance work?
For each parent or grandparent aged 60 or above, you can claim HK$50,000 (HK$130,000 from 2024/25). If the parent lives with you continuously throughout the year, you can claim an additional HK$50,000 (HK$130,000) for the cohabiting allowance. For parents aged 55-59, the allowance is HK$25,000 each. Both biological and adoptive parents qualify; in-laws also qualify if you maintain them.
Can I claim MPF voluntary contributions as a deduction?
Yes — MPF Tax-deductible Voluntary Contributions (TVC) and Qualifying Deferred Annuity Policy (QDAP) premiums combined are deductible up to HK$60,000 per year. This is in addition to the HK$18,000 mandatory MPF deduction. To qualify, TVC must be made into a TVC account (not a regular MPF account) and QDAP must be a policy approved by the Insurance Authority.
What is the difference between progressive and standard rate tax?
IRD calculates your tax using both methods and applies whichever results in lower tax. Progressive rates (2%-16%) apply to (Income − Allowances − Deductions). Standard rate (15% on first HK$5M, 16% above) applies to (Income − Deductions only, no allowances). Most middle-income taxpayers pay the progressive rate. High earners over HK$2M-3M often pay the standard rate because the allowance benefit is exceeded by the progressive rate increases.
Are there any tax rebates for 2026/27?
The 2026/27 Budget rebates depend on the annual Financial Secretary's budget speech (typically February each year). Recent years have provided 100% rebates capped at HK$3,000-HK$10,000. Verify the current rebate at ird.gov.hk after the Budget is announced. Rebates are applied automatically by IRD against your final assessment.